- Strengthened Balance Sheet with $1.7 Million Cash Balance - Strong Gross Margin of 75%
HICKSVILLE, NY / ACCESSWIRE / May 22, 2021 / Can B Corp. (OTCQB:CANB) ("Can B" or the "Company") a diversified health and wellness company, announced today operating and financial results for the three months ended March 31, 2021.
Marco Alfonsi, Can B's Chief Executive Officer, commented, "While we experienced a decline in our revenue due to Covid-19's negative impact on markets we serve in elective surgeries and lost clients due to business closings of certain distributors, we have taken the time to maintain and strengthen our vertically integrated platform. As an integrated Health & Wellness company providing the highest quality cannabidiol (CBD) and traditional wellness products our business pipeline remains strong for both our own branded lines and our private label contract manufacturing. Additionally, we are in several ongoing discussions with potential corporate opportunities and strategic partnerships and acquisitions that would accelerate our growth."
Key Recent Highlights:
Tripled production with the installation of new high-speed equipment to expand production at its Pure Health Products facility in Lacey, Washington
Launched ImmuneX2 in collaboration with Dr. Karl Zarse, a super immune boosting twice a day AM/PM supplement
Acquired assets from leading-edge hemp technology group to add expertise in pharmacokinetics for the confluence of science, nature, and culture
Cash balance of $1.7 million, as of April 2021
Closed on the acquisition of assets and talent from a hemp derivative development and manufacturing group. A newly formed wholly-owned subsidiary, Botanical Biotech LLC ("BB"), will be the new home for Florida-based research & development laboratory and extraction facility for the Company. BB will focus on developing and implementing new pharmacokinetics technology and partnering with global and emerging brands to create innovative products and solutions that are positioned for sustainability and wellness and are culturally driven.
Signed a definitive agreement to acquire the assets of Imbibe Health Solutions LLC ("Imbibe"), a developer and marketer of CBD and related products. Imbibe has developed several CBD health and wellness products including topical salves, bath soaks, massage oils, and energy and dietary supplements. Can B will be putting Imbibe into one of its current inactive wholly-owned subsidiaries and will be renaming that subsidiary to reflect the products and culture that comes with the Imbibe acquisition.
Financial Results for the Three Months Ended March 31, 2021:
Revenue for the three months ended March 31, 2021 was $306,940, a decrease of $262,767 or 46%, compared to $569,707 for the three months ended March 31, 2020. The decrease was due to the impact of the COVID-19 outbreak which resulted in the termination of elective surgeries which is the Company's primary medical device revenue. In addition, certain distributors lost clients due to business closings which had an additional impact on the Company's overall revenue activity.
Gross profit for the three months ended March 31, 2021 was $230,145, resulting in a gross margin of 75.0%, compared to $448,158 and 78.7% for the three months ended March 31, 2020. Absolute gross profit decreased due to a decrease in sales because of the Covid-19 pandemic.
Operating expenses for the three months ended March 31, 2021 were $2,022,679, an increase of $462,528 or 30%, compared to $1,560,151 for the three months ended March 31, 2020. This increase was a direct result of professional fees incurred and attributable to the Company's asset acquisitions and Regulation A offering.
Operating loss for the three months ended March 31, 2021 was $1,792,534, an increase of $680,541 or 62%, compared to $1,111,993 for the three months ended March 31, 2020.
Net loss for the three months ended March 31, 2021 was $2,179,882, an increase of $1,045,775 or 92%, compared to $1,134,107 for the three months ended March 31, 2020. The resulting EPS loss for the three months ended December 31, 2021 was a ($0.24), as compared to an EPS loss of ($0.33) for the three months ended March 31, 2020. The increase in net loss was due to the $462,528 increase in total operating expenses coupled by the $366,059 increase in other expense - net, the $825 decrease in provision for income taxes and the $181,987 decrease in gross profit.
About Can B Corp.
Can B Corp. (OTCQB:CANB) is a Health & Wellness company providing the highest quality cannabidiol (CBD) products under the brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. The Company has launched Super Foods, a line of nutritional supplements. Can B Corp. owns and operates an R&D and production facility in Lacey, WA and Green Grow Farms, a licensed hemp grow and cultivation in New York. To learn more about Can B Corp. and our comprehensive line of high quality CBD products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook, or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
For more information about Can B Corp., please visit: CanBCorp.com
Forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner of our future financial condition or stock price. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
